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Microlesson · 5-min read

Service of Documents on a Company and on Members (Sec 20)

# Service of Documents on a Company and its Members

Section 20 of the Companies Act, 2013 lays down how documents (notices, statements, communications, etc.) can be legally served on (i) the company, (ii) the Registrar, and (iii) the members.

## 1. Modes of Service ON a Company / its Officer

A document may be served on a company or on any officer of the company by any of the following modes:

#Mode
(a)Registered post or speed post
(b)Courier service
(c)Leaving it at the registered office of the company
(d)Electronic mode or any other prescribed mode

## 2. Special Rule — Securities in Demat Form

Where securities are held with a depository, the records of beneficial ownership maintained by the depository may be served electronically or by any other prescribed mode. This recognises that physical share registers are not the only source of address information today.

## 3. Service of Documents ON the Registrar or a Member

### (a) Modes of Service

A document may be served on the Registrar or on any member of the company by:

  • Post (ordinary), registered post, speed post or courier,
  • Delivering it at his office/address,
  • By electronic mode or any other prescribed mode.

### (b) Member's Right to Choose Mode

  • A member may request the company to deliver any document to him through a particular mode.
  • For this, the member shall pay such fees as may be determined by the company in its AGM.

## Key Idea

The section is enabling and inclusive — it gives the company multiple valid options. Electronic service is recognised as a standard mode, reflecting today's digital reality. The right of a member to choose a specific mode (against payment) protects shareholder convenience.

Worked example

### Example 1

Example: XYZ Ltd. emails its notice of AGM to all members at the email IDs recorded with the depository. Mr. P, a member holding shares in physical form, writes to the company that he wishes to receive all documents only by speed post. The AGM may fix a fee, say ₹100 per dispatch, payable by Mr. P. On payment, XYZ Ltd. must send him documents by speed post. Electronic dispatch to others remains valid service.

### Example 2

Example: A registered letter sent to the registered office of ABC Pvt Ltd is returned 'office locked, no such company'. The company is still deemed served because the law treats leaving the document at the registered office as valid service — actual receipt by an officer is not required.

⚠️ Common exam mistakes

  • Forgetting that 'courier' is an independent statutory mode under Sec 20 — not merely a sub-category of post.
  • Believing electronic mode is permitted only for companies, not for members — it is permitted for both sides.
  • Assuming members can demand any mode free of charge — the company can charge fees fixed at the AGM.
  • Confusing service on Registrar/member (where ordinary post is allowed) with service on the company (which requires registered/speed post or courier, not ordinary post).
Bare-Act text Section 20 · Companies Act, 2013 · click to expand
Section 20: (1) A document may be served on a company or an officer thereof by sending it to the company or the officer at the registered office of the company by registered post or by speed post or by courier service or by leaving it at its registered office or by means of such electronic or other mode as may be prescribed: Provided that where securities are held with a depository, the records of the beneficial ownership may be served by such depository on the company by means of electronic or other mode. (2) Save as provided in this Act or the rules made thereunder for filing of documents with the Registrar in electronic mode, a document may be served on Registrar or any member by sending it to him by post or by registered post or by speed post or by courier or by delivering at his office or address, or by such electronic or other mode as may be prescribed: Provided that a member may request for delivery of any document through a particular mode, for which he shall pay such fees as may be determined by the company in its annual general meeting.
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